Franklin Square Launches Fifth BDC

FS Investment Corporation IV, a business development company sponsored by Franklin Square Capital Partners, has satisfied its minimum offering requirement, admitted its initial public investors as stockholders and commenced operations. The company has registered for public sale in a continuous offering up to 250 million shares of common stock.

FSIC IV is focused on investing primarily in the senior secured debt of private middle market U.S. companies.

“We are pleased to launch the fourth generation of our core income fund franchise,” said Michael C. Forman, chairman and chief executive officer of FSIC IV. “…We believe FSIC IV combines the leading capabilities of our direct origination investment platform with an innovative commission structure that meets the needs of financial advisors and investors.”

According to the company, FSIC IV is one of the first BDCs to launch with a commission structure that is responsive to FINRA Regulatory Notice 15-02, lowering both upfront and all-in distribution fees, while seeking to align the interests of financial advisors, investors and the sponsor.

FSIC IV launched with more than $9.1 million in capital, which included a meaningful sponsor commitment from affiliates of Franklin Square and FSIC IV’s investment sub-adviser, GSO / Blackstone Debt Funds Management LLC.

Founded in 2007, Franklin Square is a manager of alternative investment funds that introduced the industry’s first non-traded business development company, FS Investment Corporation (NYSE: FSIC), which listed its shares on the New York Stock Exchange on April 16, 2014, marking the first such liquidity event for a non-traded BDC. As of September 30, 2015, Franklin Square managed approximately $17 billion in total assets, including $15.7 billion in BDC assets, making it the largest manager of BDCs.

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